Old Mill Race apartments awarded tax incentives for rehab

Don Reid, Coldwater Daily Reporter
·2 min read

COLDWATER — Old Mill Race Apartments, 517 West Chicago, were awarded Friday a $434,564 federal Low-Income Housing Tax Credit administered by the Michigan State Housing Development Authority to refurbish 48 units of apartment housing.

Gov. Gretchen Whitmer announced $14 million in funding to build or improve nearly 700 affordable housing units across 17 projects across the state including Old Mill Race.

Old Mill Race apartments will see a $2.5 million renovation update.
Old Mill Race apartments will see a $2.5 million renovation update.

Owners of CRA Development LLC and Cove Investments LLC can claim credits against their tax liability annually for up to 10 years.

MSHDA said this is an important initiative that helps incentivize investments in affordable housing in local communities.

The Coldwater City Council in May already granted the project a 9% payment in lieu of taxes or PILOT based on the $2.5 million update of the 40-year-old project just off U.S. 12 west of Butters Avenue.

Rather than pay ad valorem taxes the company pays 9% of net revenues. The city estimated it would reduce the project payments by about $1,000 a year for all taxing entities based on current taxes and not the one for the upgraded project.

The 48 units at Old Mill Race apartments next to the Sauk River east of Butters Avenue will soon see an update with tax incentives.
The 48 units at Old Mill Race apartments next to the Sauk River east of Butters Avenue will soon see an update with tax incentives.

The PILOT is used by many apartments targeted to low and moderate-income families in exchange for public benefit.

Whispering Pines Apartments and Meadowview Senior Apartments currently have PILOT taxation in Coldwater.

In announcing the tax credits Gov. Whitmer said: “As rents and home prices go up across the state, it’s clear that quality, affordable housing is out of reach for far too many Michiganders. We must build more housing, which is what makes this program so important. It’s also why I signed the bipartisan Building Michigan Together Plan last year.”

That program has a goal of building or rehabilitating 75,000 housing units within the next five years.

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“These are the types of steps we need to take to make sure every Michigander has a safe, affordable place to call home,” Whitmer said.

This current round of funding will enable the creation or preservation of 683 total rental units.

— Contact Don Reid: dReid@Gannett.com. Follow him on Twitter: @DReidTDR.

This article originally appeared on Coldwater Daily Reporter: Old Mill Race apartments awarded tax incentives for rehab with tax incentives from feds and state.